Are you investing
or speculating?
By Olawale Hamed
I
n finance, an investment can be
defined as a monetary asset pur-
chased with the idea that the asset
will provide income in the future or
appreciate and be sold at a higher
price.
Speculation is the act of trading in an
asset, or conducting a financial trans-
action with a significant risk of loss of
part or all of the initial outlay, in expec-
tation of a substantial gain.
With speculation, the risk of loss is more
than offset by the possibility of a huge
gain; otherwise, there would be very
little motivation to speculate. Although
12 •
The Lion King
• April - June 2015
Business
|
Investment
